§ Mr. McNamaraasked the Chancellor of the Exchequer what is the wife's personal allowance for tax when she and her husband are both over 65 years of age.
§ Mr. Robert SheldonUnder the proposals which my right hon. Friend announced in his November Budget a married couple, either of whom is aged 65 or over and whose combined income is £3,000 or less, will receive for 197–576 an age allowance of £1,425 in place of the ordinary married allowance. Entitlement to the wife's earned income allowance is not affected if the wife has earned income of her own.
§ Mr. McNamaraasked the Chancellor of the Exchequer what is the position of a retired wife's personal allowance when the wife is in receipt of her own occupational pension; and whether such an allowance is coupled with her husband's for the purposes of married couples' tax allowance.
§ Mr. Robert SheldonUnder the ordinary tax rules the income of a married couple living together is aggregated and taxed as one. The husband is entitled to the married man's allowance and an occupational pension earned by the wife in her own right attracts the wife's earned income allowance in addition.
§ Mr. McNamaraasked the Chancellor of the Exchequer (1) in the case of a wife over 65 years who does not obtain age relief for the year 1975–76, whether the personal allowance remains at £950 if there are pension payments up to that amount;
(2) whether the personal allowance of a wife based on her pension/income is the same as a single person's allowance provided that she earns as much as that allowance; and whether she can also claim earned income age relief.
496W
§ Mr. Robert SheldonIn my right hon. Friend's Budget Statement last November he proposed that the age allowance for a single person for 1975–76 should be £950. I must ask my hon. Friend to await my right lion. Friend's forthcoming Budget Statement for details of other personal allowances for 1975–76.